CTC is Rs 40 LPA but cannot even afford a vacation: CA decodes a 32-year-old techie's financial reality

It sounds like the dream, doesn’t it? Rs 40 lakh per annum. Swanky job in tech. A 1.5 crore apartment in Mumbai. A shiny car in the parking lot. From the outside, it’s a picture of success. But peel back the curtain, and the reality is sobering: a 32-year-old IT professional with a CTC of Rs 40 LPA is broke. Not just metaphorically — he literally cannot afford a single stress-free vacation. Welcome to India’s newest illusion: high income with zero financial freedom. Chartered Accountant Nitin Kaushik recently broke down this alarming financial profile on X.

CTC: Rs 40 LPA
In-hand salary: Rs 2.2 lakh/month
Flat in Mulund (Mumbai): Rs 1.5 crore

Home loan: Rs 1.25 crore
EMI: Rs 1.12 lakh/month

Right off the bat, more than 50% of his salary goes toward the home loan. That’s not including maintenance, property tax, or rising interest rates. Add to that: Car EMI: Rs 15,000/month, living expenses (food, utilities, social life): Rs 50,000/month. What’s left? A razor-thin saving margin of Rs 30,000–Rs 40,000/month, if everything goes perfectly. But life rarely plays by the rules. One minor health issue, one job switch, or even a trip abroad — and the entire house of cards tumbles.

CA points out the real trap

- Asset-rich, liquidity-poor

- Lifestyle inflated income

- With no real investments or emergency fund

- Retirement planning is becoming non-existent

How to chase financial freedom instead?

If your income isn’t bringing you peace of mind, it may be time to rethink your financial approach. As Kaushik suggests, the first step is to control your spending — don’t let your income dictate your expenses; instead, let your long-term goals lead the way. Building a liquid emergency fund is essential and non-negotiable. Focus on investing in real, appreciating assets like mutual funds, index funds, or stocks, and steer clear of lifestyle debt that only drains your future.

Final thoughts

According to the CA, in today’s economy, cash flow is king. So if you’re earning big but still broke, you’re not alone. But staying stuck in the trap is a choice.